On October $1,$ Year $3,$ Sheyer Corp. declared a scrip dividend of $$600,000$ and issued promissory notes to its stockholders in lieu of cash. The corporation has sufficient retained earnings. The notes, which were dated October $1,$ Year $3,$ had a maturity date of September $30,$ Year $4$ and a $5\%$ interest rate. What is the effect of this scrip dividend on Sheyer's Year $3$ retained earnings after all nominal accounts are closed?

A$.$ $$0$

B$.$ $$600,000$ decrease.

C$.$ $$607,500$ decrease.

D$.$ $$630,000$ decrease.